Austria to introduce balanced budget + 60% debt cap law

[Wonkish1]

Will be passed today. There will be a 60% debt cap starting with 2020, steadily down from the 72% of debt now. The budget should be balanced from 2016 on, down from the current 3% deficit.

SPÖ, ÖVP, FPÖ, BZÖ will vote for the measure, the Greens will vote against it.

The ÖVP wants to primarily reform the pension system, by raising the "real" pension entry ages to 65. Austrians are record holders in early retirement. They also want to cut spending for the ÖBB (rail and bus system).

The SPÖ wants to raise taxes on the Wealthy instead and cut spending for bureaucracy (merging smaller towns and cities) as well as reforming the health-care system and cuts in agriculture subsidies.

Well, a lot to do in the next 9 years. The first reforms and spending cuts will probably be agreed on next year.

http://derstandard.at/1319182819077/Sparkurs-Regierung-plant-Notoperation-am-Budget

http://diepresse.com/home/politik/innenpolitik/708598/Schuldenbremse-fix-Sparpaket-folgt

Congratulations! I wish Austria well going forward this is a very big deal!

[Wonkish1]

The bigger problem are our banks, which are heavily present in Eastern Europe and Italy. It really depends how the economy evolves there in the next years, because now there are many consumers who cannot re-pay their loans to the banks and the banks are into the red.

Yeah Erste isn't looking the strongest of the European banks!